Applied Digital Begins Work on New Data Center
Applied Digital, originally focused on cryptocurrency mining, is now stepping into the AI infrastructure space. They’ve kicked off construction for a 430 MW data center in the southern United States, although they haven’t disclosed its exact location yet.
However, the company has previously faced opposition in other projects. In Harwood, North Dakota, residents pushed back against plans for a data center, and another initiative in Ellendale, Colorado, received mixed reactions. Not everyone was enthusiastic—some were actually quite skeptical.
Wes Cummins, the CEO, explained that the choice to keep the new location under wraps is, perhaps, to give the town time to gain some national media attention. “We’re not trying to hide anything,” he noted. He added that smaller towns often lack robust public relations resources, making the situation quite sensitive for them.
According to Cummins, the local community will have a chance to assess the deal shortly. “The public will know everything about this. Nothing is being done to prevent the public from knowing about it,” he stated. Reflecting on past experiences, he mentioned that reactions in Ellendale to their plans varied from mild curiosity to outright disbelief. It’s understandable, he said, that a small town of a few hundred could feel overwhelmed by this type of development.
Applied Digital plans to reveal the specific data center locations in February. “We’ll see how this all plays out soon. We’re not avoiding public comment or input,” Cummins said. He has hinted at a potential partnership with a major investment-grade hyperscaler for additional data centers in various southern U.S. locations.
The site, dubbed “Delta Forge 1,” follows the company’s convention of naming its facilities in reference to fire and metalworking. They already have similar sites, called Polaris Forge 1 and Polaris Forge 2, in North Dakota. Delta Forge 1 is set to feature two 150 MW buildings on over 500 acres, and once it’s fully operational, the plan is to create over 200 jobs for full-time and long-term contracted workers.
If everything proceeds smoothly, the facility is expected to be up and running by mid-2027. Cummins has previously teased increasing demand during an earnings call, indicating discussions with another investment-grade hyperscaler for multiple locations, including those in the Dakotas and southern U.S.
In a 2020 pivot, Applied Digital moved from mining Ethereum to focusing on broader infrastructure applications, with plans to host servers for various purposes like AI and machine learning. They’ve made partnerships with other infrastructure companies like CoreWeave and have shown interest in building advanced data centers.
In Harwood, where they faced community backlash regarding a $3 billion project, the company acknowledges the concerns among residents about utility bills and noise. Despite these challenges, they’ve reiterated their commitment to transparency as they move forward.
While the specific customer for Delta Forge 1 remains unnamed, Cummins has indicated that firms like Microsoft, Amazon, Oracle, Meta, and Google fit his criteria for “investment-grade” clients. It certainly leaves one guessing as to which major tech company is involved.
A glance at their recent pipeline suggests a project matching the scale of Delta Forge 1, which may indicate further ambitious plans on the horizon. Cummins expressed enthusiasm for the southern U.S. due to favorable construction conditions, allowing work to continue even during winter—something the team finds advantageous for ongoing development.
Overall, while the project has its complexities, the potential seems significant. It’ll be interesting to see how this unfolds in the near future.
